Dairy giant expands
New Zealand’s Fonterra Cooperative Group, the world’s biggest dairy exporter, expects a double digit jump in Middle East and Africa sales over the next year as the region’s thirst for milk products grows and populations swell, said its chief executive officer Andrew Ferrier. Fonterra’s core business involves the production of milk, milk powder and other milk-based ingredients. It acts as a key supplier to global food giants like Nestle and Kraft but also owns and operates a number of high profile consumer brands like Anchor butter, cheese and milk, Tip Top ice cream and dietary supplement Anlene. To meet the growing dairy requirements of the Middle East, Fonterra recently paid 120 million Saudi riyals (US$32 million) to buy the remaining 51 per cent it didn’t already own in Saudi NZ Milk Products Co. from Saudi Dairy and Foodstuff Company, or Sadafco. Full ownership of the manufacturing plant, said Ferrier, gives Fonterra “the ability to grow the facility as our business grows.” “It makes an enormous amount of sense to us to have that footprint. We can make a number of different products from there,” he added. Ferrier said the Middle East, Africa region currently accounts for about 10 per cent of the conglomerate’s total global revenues. In the six months to January 31, Fonterra’s sales worldwide amounted to $7.7 billion.
